GST Registration NZ: The $60,000 Threshold and How to Register

Short answer: You must register for GST in New Zealand when your turnover from a taxable activity was at least $60,000 in the last 12 months, or you expect it to be at least $60,000 in the next 12 months, and Inland Revenue gives you 21 days to register. Below that, registration is optional. You register in myIR with your IRD number, business industry classification (BIC) code, bank account and turnover figures, and you choose an accounting basis and filing frequency. Your GST number is your IRD number, and from your start date you charge 15% GST.

The rules here are Inland Revenue’s, from its registering for GST and register for GST pages, and apply in the 2027 tax year (1 April 2026 – 31 March 2027). The guide is written for sole traders, with a note for companies. Once you are registered, how to calculate GST covers the arithmetic and GST due dates covers when each return is due.

What is the GST threshold in NZ?

The threshold is $60,000 of turnover in any 12-month period, looking backwards or forwards. You must register if you carry out a taxable activity and either:

• your turnover was at least $60,000 in the last 12 months, or
• you expect it to be at least $60,000 in the next 12 months.

Three details catch people out:

• It is turnover, not profit. A contractor who bills $70,000 and clears $35,000 after costs is over the line.
• It is any 12 months, not the tax year. Check it every month.
• The forward test counts. A contract that will take you past $60,000 in the next 12 months means registering now, not when the money arrives.

You must also register, at any turnover, if you add GST to your prices.

Your situation	Must you register?
Invoiced $48,000 in the last 12 months, expect similar	No, but you can choose to
Invoiced $52,000, steady work, then sign a $15,000 job for next month	Yes: you now expect $60,000 or more in the next 12 months
Invoiced $61,000 in the last 12 months, quiet year ahead	Yes, on the last-12-months test
Turnover under $60,000 but you add GST to your prices	Yes

How long do I have to register for GST?

Once you meet the test, you have 21 days to register, and Inland Revenue advises registering as soon as you know you may go over $60,000. Registration normally starts from the date you complete it in myIR; Inland Revenue backdates a start date only in exceptional circumstances.

How do I register for GST in myIR?

What you need:

• the IRD number of the person or organisation registering (for a sole trader, your personal IRD number)
• the bank account number for GST refunds
• your turnover in the last 12 months
• your expected turnover in the next 12 months
• your BIC code, which the “Find my BIC code” tool on Inland Revenue’s site will look up for your trade

The steps:

1. Log in to myIR.
2. Go to “I want to…”, and under “Registration, application and enrolment” select “Register for Goods and services tax (GST)”.
3. Enter your details and turnover, and your BIC code when asked.
4. Choose your accounting basis: payments, invoice or hybrid. If you do not choose, Inland Revenue puts you on the invoice basis.
5. Choose your filing frequency: monthly, two-monthly or six-monthly.
6. Submit. Your registration confirmation shows your taxable periods and filing frequency, which tell you when your first return is due.

If you are starting a company, you can register it for an IRD number and GST at the same time as you incorporate. The Companies Office tax registration page says you then receive the certificate of incorporation and the company’s IRD and GST numbers together. Sole trader vs company covers whether a company is worth it.

Which accounting basis and filing frequency should I choose?

These two choices decide which sales go in each return and how often you file. Inland Revenue’s page on which accounting basis and filing frequency to use sets the limits.

Choice	Option	Who can use it
Accounting basis	Payments: GST on money actually received and paid	Sales of $2 million or less in 12 months
	Invoice: GST on invoices issued and received, paid or not	Anyone (the default)
	Hybrid: invoice basis for sales, payments basis for purchases	Anyone
Filing frequency	Six-monthly	Sales under $500,000 in any 12 months
	Two-monthly	Sales under $24 million in any 12 months
	Monthly	Anyone; compulsory above $24 million

Many sole traders choose the payments basis, so they only pay GST on money that has arrived. The basis also sets your late filing penalty: $50 on the payments basis, $250 on the invoice or hybrid basis. You can apply to change either choice later.

Is my GST number the same as my IRD number?

Yes. Once you are registered, your GST number is your IRD number. A sole trader uses their personal IRD number for the business, so that same number becomes the GST number on your invoices. A company has its own IRD number, which becomes its GST number.

Should I register for GST voluntarily?

You can choose to register if your turnover is under $60,000, as Inland Revenue’s registering for GST voluntarily page confirms. Whether it pays depends mostly on who your customers are.

Reasons to register:

• You can claim back the GST on business purchases, from tools and materials to a vehicle.
• Inland Revenue points out that it helps you keep on top of your paperwork and see how the business is doing, and may make dealing with suppliers easier.
• If your clients are GST-registered businesses, adding GST costs them nothing in the end, because they claim it back.

Reasons not to:

• You must add 15% to your prices, or absorb it. For households, who cannot claim it back, that is a real price rise.
• You file a return every period, even a nil one, with penalties for filing or paying late.
• When you later cancel, you pay GST on business assets you keep (see below).

Worked example. Two painters each have $45,000 of turnover and $6,900 of GST-inclusive expenses.

	Painter A: mainly households, keeps prices the same	Painter B: mainly GST-registered builders, adds GST
Charged to clients	$45,000 (now including GST)	$51,750 ($45,000 + 15%)
GST on sales (3/23 or 15%)	$5,869.57	$6,750.00
GST credit on expenses ($6,900 × 3/23)	$900.00	$900.00
GST paid to Inland Revenue	$4,969.57	$5,850.00
Effect of registering	$4,969.57 a year worse off	$900 a year better off

Painter B’s builders claim the $6,750 back, so their cost is unchanged. Painter A takes the hit or raises prices. Inland Revenue’s guide IR365, GST: do you need to register? walks through the decision.

What changes on my invoices after I register?

From your start date you add GST at 15%, and invoices over $200 must carry your GST number and the GST, under Inland Revenue’s taxable supply information rules.

On the invoice	Before registration	After registration
Your name or trade name, date, description, amount	Required	Required
GST number	None to show	Required on sales over $200
GST at 15%	Must not be charged	Required on sales over $200: GST-exclusive amount, GST and total, or a GST-inclusive total with a statement that GST is included
Buyer’s name and one identifier	Good practice	Required on sales over $1,000 if the buyer is GST registered

Before registering, head your invoice “Invoice”, not “Tax invoice”, and leave GST off; a line such as “Not registered for GST” saves business clients asking why. The NZ invoice template has a layout for each, and how to invoice as a contractor covers the rules in full. If you quoted prices before registering for work you will invoice afterwards, agree with the client in writing whether GST is added.

You may also be able to claim some GST back on business assets you bought before you registered, through an adjustment. Inland Revenue’s GST adjustments session says you need the original purchase date and price, your GST registration date and the percentage of business use. Keep the receipts for those purchases.

Can I cancel my GST registration later?

Yes. Inland Revenue lets you cancel if you expect your turnover to drop below $60,000 and stay there for a while, and you should cancel if you stop trading rather than file nil returns indefinitely.

Cancelling has a cost to plan for. In your final GST return you pay GST on any business assets you keep, worked out on their current open market value: value × 3 ÷ 23. A van worth $23,000 that you keep for private use means $3,000 of GST in your final return. If you do not make that adjustment, you remain liable for GST when you later sell the asset.

Keeping GST-ready records, and where does Keel fit?

After registering, each return is built from your invoices and receipts. Inland Revenue’s record keeping rules require those records for at least 7 years. How to file a GST return shows what goes in each box.

Keel: Invoice Maker & Receipts, an iPhone app by Ilura Technology OÜ, keeps those records together. You create quotes that become invoices in one tap, send PDF invoices, capture receipts and expenses, log business mileage, and keep each item under its job and customer. “Who owes you” shows unpaid invoices and prepares reminder drafts that you review and send yourself; nothing is sent automatically. Records stay on your iPhone, with no account, no bank connection and no cloud sync, and the App Store privacy label reads “Data Not Collected”.

Keel does not register you for GST, file GST returns, calculate the GST you owe or connect to Inland Revenue. It is free with no invoice limit (free invoices carry a small “Made with Keel” footer), and Keel Lifetime is a one-time purchase of $249.99 USD (the App Store shows your local price) that adds custom branding, signature, premium templates and accountant-ready exports and reports. Keel on the App Store. More guides are on the New Zealand hub.

Frequently asked questions

What is the GST threshold in NZ? $60,000 of turnover from a taxable activity in any 12-month period. You must register if your turnover was at least $60,000 in the last 12 months, or you expect it to be at least $60,000 in the next 12. It is gross turnover, not profit, and it is any rolling 12 months, not the tax year.

How long do I have to register for GST in NZ? 21 days from when you become liable to register. Inland Revenue suggests registering as soon as you know your turnover may go over $60,000. Registration normally starts from the date you complete it in myIR, and Inland Revenue backdates it only in exceptional circumstances.

What do I need to register for GST? Your IRD number, a bank account for GST refunds, your turnover for the last 12 months and your expected turnover for the next 12, and your BIC code. In myIR you also choose an accounting basis (payments, invoice or hybrid) and a filing frequency (monthly, two-monthly or six-monthly).

Is my GST number the same as my IRD number? Yes. Once you are registered, your GST number is your IRD number. A sole trader uses their personal IRD number for the business, so that number goes on invoices as the GST number. A company uses the company’s own IRD number.

Can I register for GST as a sole trader below $60,000? Yes. Registration is voluntary below the threshold. It usually pays off if most of your clients are GST-registered businesses, because they claim back the GST you add while you claim GST on your costs. If you mostly sell to households, it usually costs you, because you must add 15% or absorb it.

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This article is general information, not tax advice. Consult a qualified New Zealand tax professional.